If an LMIA-sponsored employee on a closed work permit abandons their job or goes missing, Canadian employers are legally required to report the absence to Service Canada and the Canada Border Services Agency (CBSA). You must immediately stop their payroll, issue a Record of Employment (ROE), and document all attempts to contact them to avoid heavy non-compliance penalties.
Hiring foreign talent through the Temporary Foreign Worker Program (TFWP) creates a legally binding relationship between the Canadian employer, the worker, and federal immigration authorities. Occasionally, an employer may face a highly disruptive situation where a foreign worker on a closed work permit suddenly stops showing up for their shifts, abandons their position, or goes completely missing without providing notice.
When this happens, ignoring the problem is the worst action a business can take. Canadian law generally requires employers to act promptly to update the worker’s employment status with the government. 📝 Failing to report an absent foreign worker can lead to accusations of complicity in illegal underground work, human trafficking investigations, or massive federal fines for non-compliance. If you are unsure of your specific reporting duties, consulting an experienced law firm from our directory is a wise and protective step.
Step-by-Step Reporting Process for Abandoned Positions in Canada
Whether your corporate offices are located in Winnipeg, Toronto, or Halifax, the legal requirements for reporting missing foreign workers are mandated federally by Service Canada and Immigration, Refugees and Citizenship Canada (IRCC). Follow these critical steps to protect your business.
Step 1: Attempting and Documenting Contact
Before taking official action, you must make reasonable attempts to contact the missing employee to rule out medical emergencies or accidents. Call their registered phone numbers, send formal emails, and reach out to their emergency contacts. You must document every single attempt in your HR files, keeping detailed logs of dates and times in case of a future federal audit.
Step 2: Ceasing Payroll Immediately
Once you determine the worker has abandoned their role, you must immediately stop their payroll. You are not legally obligated to continue paying a worker who is not fulfilling their employment contract. Ensure that your final pay cheque includes any outstanding vacation pay or legally mandated severance, if applicable under your specific provincial labour laws.
Step 3: Issuing the Record of Employment (ROE)
Within five calendar days of the interruption of earnings, the employer must issue a Record of Employment (ROE) to the Canada Revenue Agency (CRA) and Service Canada. 🏢 On the ROE, you must use the correct code for the separation. Most employers in Canada use Code E (Quit/Voluntary Leaving) or Code M (Dismissal) depending on the specific circumstances of the job abandonment.
Step 4: Notifying Service Canada regarding the LMIA
Because the employee was hired under a specific Labour Market Impact Assessment (LMIA), you must formally notify Service Canada that the worker is no longer employed at your company. You can do this by submitting a written notice detailing the date the employee went missing and the steps you took to locate them. This absolves your company of ongoing responsibility for that specific worker.
Step 5: Alerting the Canada Border Services Agency (CBSA)
If you have strong reasons to suspect that the worker is remaining in Canada illegally, working in the underground cash economy, or if you suspect they are a victim of foul play, you should report the situation to the CBSA Border Watch Line. 🚨 Providing the CBSA with the worker’s full name, date of birth, and work permit details allows federal authorities to manage the immigration violation.
What are the Costs of Non-Compliance?
Failing to report a missing foreign worker can result in devastating financial consequences for a Canadian business. Here is a breakdown of potential penalties an employer might face for non-compliance:
| Violation Type | Potential Penalty (CAD) | Additional Consequences |
|---|---|---|
| Failing to maintain accurate employment records | Up to $100,000 CAD per violation | Warning letter and heavy federal audit |
| Continuing to run payroll for absent workers | CRA Tax Penalties | Accusations of tax fraud or complicity |
| Failing to report LMIA changes to Service Canada | Administrative fines starting at $1,000 CAD | 1 to 10-year ban from hiring foreign workers |
| Legal Representation (Audit Defence) | $5,000 – $15,000+ CAD | Significant loss of corporate productivity |
How Long Do You Have to Act?
Time is of the essence when a foreign worker abandons their job. In Canada, employment laws dictate that you must issue an ROE within five days of the worker’s last paid day. Furthermore, notifying Service Canada should happen within 14 days of confirming the job abandonment. Waiting months to report a missing worker significantly increases the risk that Service Canada will view your business as non-compliant.
Frequently Asked Questions (FAQ)
Can I personally cancel the employee’s closed work permit?
No. An employer does not have the authority to legally cancel or revoke a Canadian work permit. Only IRCC can cancel a visa or permit. Your legal duty is strictly limited to reporting the employment termination to the proper federal authorities.
Am I responsible for the worker’s actions after they go missing?
Once you properly document the job abandonment, stop payroll, issue the ROE, and notify Service Canada, your legal responsibility for the worker ends. You are generally not liable for any crimes or immigration offences they commit after abandoning their employment.
What if the missing worker tries to come back after a few weeks?
If you have already officially terminated them and issued an ROE for job abandonment, you are not obligated to take them back. If you do wish to rehire them, and their closed work permit is still technically valid for your business, you should consult a lawyer to ensure you handle the payroll reinstatement legally.
Will this incident affect my future LMIA applications?
If you follow the reporting rules correctly and document the job abandonment properly, a worker quitting will not typically harm your future LMIA applications. However, if multiple workers constantly abandon your workplace, Service Canada may launch an audit to investigate your working conditions.
Do I need to inform the local police department?
You only need to involve the local police if you genuinely believe the worker has been the victim of a crime, is in physical danger, or is involved in severe criminal activities. For standard immigration and job abandonment issues, reporting to CBSA and Service Canada is the correct procedure.
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